UIDF - GOVERNMENT SCHEME
News: Budget
2023 | PM Awas Yojana share rises by 66%, with more focus on Tier 2 and 3
cities
What's in the news?
● Giving
a huge boost to affordable housing, the Union Budget presented on February 1 increased the allocation for the PM Awas
Yojana (PMAY) by 66%.
● Finance
Minister Nirmala Sitharaman also announced an Urban Infrastructure Development
Fund (UIDF) which will be used to create
urban infrastructure in Tier 2 and Tier 3 cities.
Key takeaways:
● PMAY
was allocated over ₹79,000 crore this fiscal as compared to last year’s ₹48,000
crore.
● The
scheme was launched in 2015 with the objective of providing affordable housing to all citizens.
● The
scheme was created to assist the
middle-income community, economically disadvantaged groups (EWS) and low-income
groups (LIG).
● The
Credit Linked Subsidy Scheme (CLSS)
is aimed to provide its beneficiaries with an interest subsidy to avail loans
to purchase or build a house.
Urban Infrastructure Development Fund:
● It
is established through the use of priority
sector lending shortfall.
Management: National Housing Bank (NHB).
Features:
● It
is used by public agencies to create urban infrastructure in Tier 2 and Tier 3
cities.
● The
Centre will spend ₹10,000 crore per year
for the fund.
● It
is used for the efficient use of land resources, adequate resources for urban
infrastructure, transit-oriented development, enhanced availability and
affordability of urban land, and opportunities for all.
● It
will encourage urban planning reforms
and actions to transform cities into “sustainable cities of tomorrow”
Other measures:
● The
cities will be incentivized to improve their credit worthiness for municipal bonds.
● This
will be done through property tax
governance reforms and ring-fencing user charges on urban infrastructure.
● All
cities and towns will be enabled for 100%
mechanical desludging of septic tanks and sewers to transition from manhole
to machine-hole mode and the increased focus will be provided for scientific
management of dry and wet waste.
Go back to basics:
Pradhan Mantri Awas Yojana - Urban (PMAY-U):
● It
is a flagship Mission of Government of India being implemented by the Ministry of Housing and Urban Affairs
(MoHUA).
● It
was launched on 25th June 2015 and addresses urban housing shortage among the EWS/LIG and MIG categories including the
slum dwellers by ensuring a pucca house to all eligible urban households by the
year 2022, when Nation completes 75 years of its Independence.
● PMAY(U)
adopts a demand driven approach wherein the Housing shortage is decided based
on demand assessment by States/Union Territories.
● The
scheme got extended to another two years to 31.03.2024.
Coverage:
● It
covers the entire urban area consisting of 4041
statutory towns with initial focus on 500 Class I cities.
Components of PMAY-U:
The
programme has 4 components such as
● Credit
Link Subsidy Scheme (CLSS).
● In-situ
rehabilitation of existing slum dwellers using land as a resource through
private participation.
● Affordable
Housing in Partnership (AHP).
● Subsidy
for beneficiary led - individual house construction/enhancement.
Features:
● The
government would provide an interest subsidy of 6.5% on housing loans availed
by the beneficiaries for a period of 15 years from the start of loan.
● The
houses under Pradhan Mantri Awas Yojana would be allotted to preferably the female member of the family.
● All
houses under PMAY (U) have basic
amenities like toilets, water supply, electricity and kitchen.
● Convergence
with the Swachh Bharat Mission-Gramin (SBM-G), MGNREGS, or any other dedicated
source of financing will be used to fund the construction of toilets.
● Convergence
for piped drinking water, electricity, and LPG gas connections, among other
things, will be sought by several government programmers.